Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The State of Artificial Intelligence

18,077 views

Published on

Thsi report takes you through private market trends, startups working on ‘general AI’ or human-like intelligence, and the most prominent industries using AI algorithms.

Published in: Technology
  • Visit this site: tinyurl.com/sexinarea and find sex in your area for one night)) You can find me on this site too)
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • The #1 Woodworking Resource With Over 16,000 Plans, Download 50 FREE Plans...  http://tinyurl.com/y3hc8gpw
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • There are over 16,000 woodworking plans that comes with step-by-step instructions and detailed photos, Click here to take a look ➤➤ http://ishbv.com/tedsplans/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • There are over 16,000 woodworking plans that comes with step-by-step instructions and detailed photos, Click here to take a look ▲▲▲ http://tinyurl.com/yy9yh8fu
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Sex in your area for one night is there tinyurl.com/hotsexinarea Copy and paste link in your browser to visit a site)
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

The State of Artificial Intelligence

  1. 1. THE STATE OF ARTIFICIAL INTELLIGENCE Recent advances, startup landscape, the road ahead
  2. 2. The technology market intelligence platform. CB Insights software lets you predict, discuss, and communicate emerging technology trends using data in ways that are beyond human cognition. www.cbinsights.com 2
  3. 3. www.cbinsights.com 3See what other customers have to say at http://www.cbinsights.com/customer-love A FEW OF OUR HAPPY CUSTOMERS The most publicly reference-able customers of anyone in the industry “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Cisco, Corporate Development
  4. 4. ACCESS THE AI COLLECTION WITH 1.6K+ COMPANIES Collections, our CRM for Innovation, lets your team easily use our data to create, and collaborate on market maps, target lists and sector reviews. No more unwieldy spreadsheets, email chains, and PowerPoint. Knowledge management done right. www.cbinsights.com 4Click here for the AI collection: https://www.cbinsights.com/collections/76371/company
  5. 5. www.cbinsights.com 5 TABLE OF CONTENTS Tech industry’s AI revolution Trends in artificial intelligence, rising interest in private companies Why now? Macro trends driving AI boom The state of AI today Definitions, startup funding, applications, robotics Emerging applications AI in gaming, reg tech, expert automation, and more Where we are headed The ‘artificial general intelligence’ debate 6 15 23 72 80
  6. 6. THE TECH INDUSTRY’S AI REVOLUTION www.cbinsights.com 6
  7. 7. ‘AI IS THE NEW ELECTRICITY’ Andrew Ng Former chief scientist at Baidu, Co-founder at Coursera www.cbinsights.com 7source: https://www.gsb.stanford.edu/insights/andrew-ng-why-ai-new-electricity “Just as electricity transformed almost everything 100 years ago, today I actually have a hard time thinking of an industry that I don’t think AI will transform in the next several years.”
  8. 8. GOOGLE’S AI GUESSED (MOST OF) OUR DOODLES www.cbinsights.com 8https://aiexperiments.withgoogle.com/ Yes, even that garden hose…
  9. 9. IBM WATSON EXPANDS ITS REACH www.cbinsights.com 9source: http://researcher.ibm.com/researcher/view_group.php?id=5948 From Watson health cloud to IoT solutions, IBM is quickly expanding the reach and adoption of its cognitive computing platform across multiple industries.
  10. 10. From calling an Uber to cooking tips, Amazon’s Alexa is changing how you interact with apps. ALEXA AND THE VOICE REVOLUTION www.cbinsights.com 10source: /www.amazon.com/alexa-skills/ “Alexa, ask My Chef what’s expiring.” “Alexa, ask Uber to request a ride.” “Alexa, ask Fitbit how I slept last night. “Alexa, what’s in the news?” “Alexa, ask the bartender, what's in a Tom Collins?” “Alexa, tell Tide I have a juice stain.”
  11. 11. Google, Facebook, Apple, Intel and other big corporations acquiring AI startups RACE FOR INTELLIGENCE www.cbinsights.com 11https://www.cbinsights.com/blog/top-acquirers-ai-startups-ma-timeline/ Google is the most active acquirer of AI startups, having acquired 11 startups since 2012. Apple, which has been ramping up its M&A efforts, ranked second with 7 acquisitions under its belt. Newer entrants in the race include Ford, which acquired Argo AI for $1B in Q1’17, cybersecurity company Sophos, and Amazon. 200+ Acquisitions since 2012 30+ M&A deals in Q1’17 11 Acquisitions by Google
  12. 12. MARRYING PATENTS WITH CB INSIGHTS DATA www.cbinsights.com 12https://www.cbinsights.com/patent-search-engine-analytics Analysis of patents provides forward-looking insight into corporate product strategy and innovation, as well as where technology innovation is happening and going.
  13. 13. www.cbinsights.com 13 AI PATENTS OF MICROSOFT, GOOGLE, AMAZON, FB, APPLE https://www.cbinsights.com/blog/google-apple-microsoft-ai-patents/ Note: The patent filing process involves a significant time-lag before the publishing of patent applications. This delay can range from several months to over two years, meaning that records prior to 2013 are likely complete at the time of analysis, but there may be applications from 2014 on that have yet to be published. Google patent to “predict new views from existing images” using deep learning Facebook’s patent for “predicting labels using deep learning model” as of 12/12/2016
  14. 14. MEDIA TRENDS: AI VS BIG DATA www.cbinsights.com 14 The Battle For Top AI Talent Only Gets Tougher From Here Ford Goes Big On AI With $1B Investment Microsoft Bets On General Artificial Intelligence With Maluuba Acquisition Samsung To Acquire Artificial Intelligence Firm Viv, Created By Siri Makers Google’s Alphago AI Beats Human In First Game Of Go Contest
  15. 15. Why now? MACRO TRENDS, RECENT ADVANCES www.cbinsights.com 15
  16. 16. www.cbinsights.com 16 Big Data + Processing Power = New Age for Artificial Intelligence
  17. 17. "Deep learning is almost like the brain... It's unreasonably effective. You can teach it to do almost anything. But it had a huge handicap: It needs a massive amount of computation. And there we were with the GPU, a computing model almost ideal for deep learning." www.cbinsights.com 17https://www.forbes.com/sites/aarontilley/2016/11/30/nvidia-deep-learning-ai-intel/ Jen-Hsun Huang CEO, NVidia
  18. 18. www.cbinsights.com 18https://www.nvidia.com/en-us/deep-learning-ai/ HORSEPOWER FOR AI: NVIDIA GPU’S DOMINATE MARKET NVidia GPUs, which initially targeted the gaming industry, are now widely used for training deep neural networks. Other big corporations like Intel and Google have focused their efforts on AI chips as well, with Intel recently acquiring startup Nervana Systems, and Google developing a custom chip called “Tensor Processing Unit.”
  19. 19. www.cbinsights.com 19https://www.cbinsights.com/blog/deep-learning-ai-startups-market-map-company-list/ To name a few, Captricity, which extracts information from hand- written data, raised $49M in equity funding from investors including Social Capital and New York Life Insurance Company. Teradeep received funding in Q1’16 from the corporate venture arm of XILINX to make programmable integrated circuits. Healthcare startups here include IBM-backed precision medicine startup Pathway Genomics and diagnostics company Enlitic. STARTUPS RIDING THE DEEP LEARNING WAVE
  20. 20. www.cbinsights.com 20 OPEN SOURCE SOFTWARE ACCELERATES RESEARCH Google open sourced its TensorFlow machine learning library in 2015, and reportedly “more than 480 people have contributed directly to TensorFlow” since then. Other libraries include Deeplearning4J from startup Skymind and Microsoft’s Cognitive Toolkit.
  21. 21. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  22. 22. RECENT ADVANCES IN AI www.cbinsights.com 21 ELON MUSK LAUNCHES NEURALINK, A VENTURE TO MERGE THE HUMAN BRAIN WITH AI March 27, 2017
  23. 23. Yann LeCun Director of research, Facebook www.cbinsights.com 22https://www.wsj.com/articles/whats-next-for-artificial-intelligence-1465827619 “Despite these astonishing advances, we are a long way from machines that are as intelligent as humans—or even rats. So far, we’ve seen only 5% of what AI can do.”
  24. 24. Where are we at? AI TODAY, STARTUP TRENDS, APPLICATIONS www.cbinsights.com 23
  25. 25. www.cbinsights.com 24 A few AI applications today VISIONA LOT OF NUMBER CRUNCHING LANGUAGE PROCESSING BUSINESS INTELLIGENCE IOT PREDICTIVE MAINTENANCE SEARCH RECOMMENDATIONS FORECASTING MODELS AUTO TECH AND DRONE COLLISION AVOIDANCE E-COMMERCE SEARCH PICK AND PLACE ROBOTS HEALTHCARE DIAGNOSTICS CHATBOTS NEWS & MEDIA CONTENT CREATION SMART HOME VOICE INTERFACES TEXT ANALYTICS
  26. 26. WHAT WE DEFINE AS “AI” IN THIS REPORT: www.cbinsights.com 25 ➢ This report contains an analysis of over 1,600 private companies found using various keywords related to artificial intelligence technologies in the CB Insights database. ➢ Our AI category includes startups developing industry agnostic AI solutions like advanced vision and language processing systems, as well as startups using predictive algorithms to solve problems in specific industries, like healthcare, cybersecurity, commerce, and finance. The applications range from e-commerce search engines and chatbots for CRM to deep learning-based cybersecurity solutions and machine learning-assisted medical imaging and diagnostics. ➢ Our funding analysis excludes on-demand taxi service, AR/VR and hardware-focused robotics startups (robotics is included as a separate section at the end of this report). It includes private companies working on driverless cars as well as robotic software startups. Only equity funding rounds and convertible notes are included in funding charts.
  27. 27. AI Equity Funding Since 2012: $14.9 BILLION across 2250 DEALS www.cbinsights.com 26
  28. 28. DEALS CONTINUE TO BREAK PREVIOUS RECORDS Deals to AI startups increased 4.6x in the last 5 years, from 150 in 2012 to 698 in 2016. The top rounds in 2016 went to auto tech company Zoox ($200M Series A) and cybersecurity startup StackPath ($180M private equity). www.cbinsights.com 27 ARTIFICIAL INTELLIGENCE: ANNUAL FUNDING HISTORY 2012-2016
  29. 29. Q1’17 MOST ACTIVE QUARTER FOR AI STARTUPS Before the close of Q1’17 (as of 3/23/17) AI startups received 245 deals and $1.7B in funding. Nearly 48% of the deals in Q1’17 were in the seed/angel stage, indicating newer companies are continuing to enter the space. www.cbinsights.com 28 ARTIFICIAL INTELLIGENCE: QUARTERLY FUNDING Q1’12-Q1’17 (as of 3/23/2017)
  30. 30. INDUSTRY STILL NASCENT, SEED DEALS DOMINATE Early-stage deals dominated across the years, accounting for 67% or more of the total deal share. Mid and late- state deals have remained fairly constant during this period. Some of the late-stage companies that raised recently include Lattice Engines, SoundHound and NIO. www.cbinsights.com 29 ARTIFICIAL INTELLIGENCE: GLOBAL DEAL SHARE 2012-2016
  31. 31. RECENT $100M+ MEGA-ROUNDS www.cbinsights.com 30 $200M Autonomous cars $180M Cybersecurity $175M $154M Healthcare 2016 $130M Healthcare Life science
  32. 32. UNICORNS USING AI ALGORITHMS ACROSS INDUSTRIES www.cbinsights.com 31 UNICORN AI FOCUS UNICORN AI FOCUS Machine learning-based credit risk modeling AI-based health date mining for personalized healthcare Deep learning-based drug discovery Built on the Neuralytics predictive analytics engine for sales insights Platform-as-a-service that facilitates building and deploying machine learning models for predictive analysis of IoT data Machine learning solutions and predictive maintenance for industrial IoT Artificial intelligence to predict and prevent cyber attacks Autonomous vehicles Machine learning to extract information from patients’ electronic health records
  33. 33. MOST WELL-FUNDED US STARTUPS IN EACH STATE USING AI ALGORITHMS The map shows the most well-funded startups leveraging artificial intelligence in each of the 35 states where there have been equity deals to the category in the last five years (as of 4/3/2017). www.cbinsights.com 32
  34. 34. NUMBER OF ACTIVE INVESTORS BY TYPE www.cbinsights.com 33 VC INVESTORS CORPORATE INVESTORS PE INVESTORS 127 211 297 384 492 2012 2013 2014 2015 2016 18 47 72 118 173 2012 2013 2014 2015 2016 11 12 15 26 32 2012 2013 2014 2015 2016 8 5 11 21 2012 2013 2014 2015 2016 ASSET/INVESTMENT MGT
  35. 35. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  36. 36. www.cbinsights.com 34 TOP VC INVESTORS IN ARTIFICIAL INTELLIGENCE RANK INVESTOR RANK INVESTOR 1 5 1 7 3 8 4 8 5
  37. 37. www.cbinsights.com 35https://www.cbinsights.com/blog/artificial-intelligence-top-startups/ CB Insights unveiled the AI 100—a list of 100 of the most promising private companies applying artificial intelligence algorithms across industries, from healthcare to auto to fintech—at the Innovation Summit in January 2017.
  38. 38. 100 AI STARTUPS YOU BETTER KNOW www.cbinsights.com 36https://www.cbinsights.com/blog/artificial-intelligence-top-startups/
  39. 39. www.cbinsights.com 37 AI HEATMAP: DEALS DISTRIBUTION BY CATEGORY Q1'12-Q1'17 (as of 3/23/17) CATEGORY Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Healthcare Horizontal Applications Commerce Ad & Marketing IoT/IIoT Business Intelligence & Analytics Fintech & Insurance Cybersecurity Sales & CRM Auto tech Personal Assistants Education HR Tech News & Media & Entertainment Legal Travel Tech Social Agriculture Physical security Reg tech Real estate IT & cloud services Sports Misc
  40. 40. Deals to industry agnostic AI applications have been fluctuating over the years, but accounted for the second highest aggregate deals among the AI categories. Deals reached a 5-year-high of 79 in 2016. AI in fintech and insurance tech is the leading category for deals in 2017 so far, with over 30 deals to the category before the close of Q1’17. Sales & CRM deals nearly doubled in 2016 from the previous year, and is the third highest category for deals so far in Q1’17. The pace of cybersecurity deals picked up in Q1’17 after a slowdown in 2016. Health and wellness is the hottest area of investment in AI, with 270 deals going to the category since 2012. KEY TAKEAWAYS www.cbinsights.com 38 HEALTHCARE HORIZONTAL APPLICATIONS FINTECH & INSURANCE OTHER
  41. 41. UNDERSTANDING AI AND MACHINE LEARNING www.cbinsights.com 39 The definitions of what an AI system is and what it’s capable of accomplishing have been constantly changing over the years with corresponding changes in technological capabilities. Access to massive amounts of data and advanced processing capabilities have ushered in a new era of AI applications. Machine learning is a set of algorithms used to make a system “artificially intelligent,” enabling it to recognize patterns from large datasets and apply the findings to new data. Machine learning can be used to train computers to understand and analyze human language, including text and voice (Natural Language Processing or NLP), to identify and analyze images (image processing and computer vision), or for time series analysis, among other things. Deep learning algorithms, a subset of machine learning, uses several layers of neural networks (processes that mimic the human brain).
  42. 42. www.cbinsights.com 40 SPOTLIGHT: AI IN HEALTHCARE, COMMERCE, AD & MARKETING, IOT
  43. 43. IOT/IIOT AD & MARKETING COMMERCE www.cbinsights.com 41 HEALTHCARE & WELLNESS Companies leveraging machine learning algorithms to reduce drug discovery times, provide virtual assistance to patients, and improve the accuracy of medical imaging and diagnostic procedures, among other things.
  44. 44. 73% of the deals since 2012 went to US startups, followed by United Kingdom (9.2%) and Israel (3.7%). However, the share of non-US deals reached a five- year-high in 2016 at 35%, compared 24% or less in previous years. So far this year, over 45% of the deals have gone to startups outside the United States, to countries including the United Kingdom, India, Netherlands, Finland, and Israel. AI IN HEALTHCARE & WELLNESS www.cbinsights.com 42 ANNUAL FUNDING HISTORY GEOGRAPHIC DISTRIBUTION OF DEALS Healthcare and wellness received the highest aggregate deals since 2012 compared to other AI categories. Deals and funding hit a 5-year-high in 2016. The top rounds last year went to unicorn companies Flatiron Health ($175M Series C) and iCarbonX ($154M Series A). So far this year, as of 3/22/17, healthcare & wellness startups have raised over $130M across 22 deals, including a $65M Series A round raised by cancer diagnosis startup Freenome. ANNUAL FUNDING HISTORY DEALS OUTSIDE THE UNITED STATES NON-US DEAL SHARE = 27%
  45. 45. 106 AI STARTUPS TRANSFORMING HEALTHCARE Imaging & diagnostics is the most crowded area in healthcare AI, with 19 out of the 24 startups in the map raising their first equity funding round since January 2015. The map also includes horizontal AI startups like Ayasdi and H2O.ai (bottom left) which have made healthcare one of their focus areas. www.cbinsights.com 43https://www.cbinsights.com/blog/artificial-intelligence-startups-healthcare/
  46. 46. TOP INVESTORS IN HEALTHCARE AI STARTUPS 2012-2017 (as of 3/23/17) www.cbinsights.com 44 RANK INVESTOR SELECT INVESTMENTS 1 Freenome, Atomwise, CloudMedX, Bay Labs, Enlitic, Recursion Pharmaceuticals 2 Zebra Medical Vision, Atomwise, Bay Labs, Lumiata, Ginger.io 3 HealthReveal, Predilytics, WellTok, Explorys 3 Teckro, Medal, Freenome, Elemental Machines 3 Freenome, Zephyr Health, Flatiron Health, Predilytics 6 HealthReveal, Arterys, MedAware
  47. 47. IDENTIFYING HIGH- MOMENTUM STARTUPS USING MOSAIC Mosaic is a quantitative framework to algorithmically measure the overall health and growth potential of private companies. Companies are scored on a 0 to 1000 scale, based on the 3 M’s described here. www.cbinsights.com 45 • Momentum – Uses signals ranging from hiring growth, exec turnover, news volume and sentiment, customer & partner signings, product development velocity, web traffic, mobile app data, and social media chatter. • Market – Uses Market Mosaic to assess health of industry the company competes in. • Money – Financial strength and viability of company based on burn rate, financing history, and investor quality.
  48. 48. EARLY-STAGE COMPANIES TO WATCH www.cbinsights.com 46 COMPANY MOSAIC (OUT OF 1000) LAST ROUND/ DATE SELECT INVESTORS AREA OF FOCUS 890 $65M/ Series A Mar’17 Allen & Company, AME Cloud Ventures, Andreessen Horowitz, CRV, Data Collective, Founders Fund, Google Ventures Cancer diagnostics 810 $8.5M/ Series A Jan’17 Ignition Partners, Mindset Ventures, Osage University Partners Predictive risk analytics 760 $10.8M/ Series A Feb’17 Flare Capital Partners, GE Ventures, Greycroft Partners, Manatt Venture Fund Early detection of chronic diseases 760 $5.3M/ Series A Dec’16 Data Collective, Eleven Two Capital, Khosla Ventures, National Science Foundation, Yann LeCun Medical imaging 670 $2.5M/ Series A Aug’16 Omidyar Network, Union Square Ventures Cognitive therapy/ mental health
  49. 49. HEALTHCARE & WELLNESS IOT/IIOT AD & MARKETING COMMERCE www.cbinsights.com 47 Companies leveraging AI algorithms for visual search, natural language processing, shopper behavioral analytics, and in-store analytics, among other things.
  50. 50. Devin Wenig CEO, eBay www.cbinsights.com 48forbes.com/sites/shoptalk/2017/03/28/6-key-takeaways-from-shoptalk-2017-an-insiders-perspective/#29aa560b24ab “If you don’t have an AI strategy, you are going to die in the world that’s coming.”
  51. 51. RETAIL AI IN THE NEWS www.cbinsights.com 49 GOOGLE HOME WORKS WITH EBAY'S SHOPBOT TO PRICE YOUR STUFF March 9, 2017
  52. 52. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  53. 53. Around 42% of the deals have gone to commerce startups outside the United States since 2012. Startups in France accounted for 6.5% of the deal share, followed by Canada (5.5%) and India (5.5%). So far in Q1’17, more than half the deals have gone to countries including South Korea, Singapore, France, United Kingdom, Canada, Israel, Poland and The Netherlands. AI IN COMMERCE www.cbinsights.com 50 ANNUAL FUNDING HISTORY GEOGRAPHIC DISTRIBUTION OF DEALS Nearly 200 deals went to startups in this category from 2012-16. Deals and funding reached a 5-year-high in 2016, with the top rounds going to California- based BloomReach ($56M Series D round) and Singapore-based Trax Image Recognition ($40M Series C round). So far in 2017, startups have raised over $100M across 21 deals. The top round in Q1’17 was a $20M Series D round to previously-mentioned Trax Image Recognition. ANNUAL FUNDING HISTORY DEALS OUTSIDE THE UNITED STATES NON US DEAL SHARE = 42%
  54. 54. 40+ AI STARTUPS TARGETING RETAIL IN ONE INFOGRAPHIC The area is emerging, and most companies on the map remain in the early stages of funding. www.cbinsights.com 51https://www.cbinsights.com/blog/ai-retail-smart-shop-startups/
  55. 55. TOP VC INVESTORS IN AI COMMERCE STARTUPS 2012-2017 YTD (as of 3/23/17) www.cbinsights.com 52 RANK INVESTOR SELECT INVESTMENTS 1 Modsy, Personali, InsightsOne 1 Reflektion, SmarterHQ, BloomReach 1 Deepomatic, Tinyclues, AntVoice 1 COSY, Emotient, Reflektion
  56. 56. EARLY-STAGE COMPANIES TO WATCH www.cbinsights.com 53 COMPANY MOSAIC (OUT OF 1000) LAST ROUND/ DATE SELECT INVESTORS AREA OF FOCUS 840 $16M/ Series A Mar’17 Index Ventures, ISAI, Mosaic Ventures Geo-location targeting for retailers 720 $0.44M/ Seed Dec’16 Unilazer Ventures Chatbot SDK for commerce 710 Undisclosed/ Series A Aug’16 Sequoia Capital India, Exfinity Venture Partners, Growx Ventures Management Apparel and fashion 710 $1.74M/ Series A Sep’16 Robert Bosch Venture Capital, Spintop Ventures In-store analytics and shopper behavior 610 $5.3M/ Series A-II May’16 Alibaba Group, Naspers, State of Mind Ventures, YJ Capital E-commerce search engine
  57. 57. COMMERCE HEALTHCARE & WELLNESS IOT/IIOT www.cbinsights.com 54 Companies leveraging AI algorithms for cross-platform advertising, intelligent e- mail marketing, and content-aware video advertising, among other things. AD & MARKETING
  58. 58. ‘1:1 MARKETING’ WITH AI www.cbinsights.com 55http://www.bizreport.com/2017/01/expert-how-to-use-ai-to-improve-roi.html Randy Wootton CEO, Rocket Fuel “Specifically, predictive marketers will leverage AI computing power to process immense amounts of data to inform marketing campaigns so they can create unique and customize experiences at the individual level in near real time--finally delivering on the promise of 1:1 marketing that we have been talking about for 20 years.”
  59. 59. Startups in the United States accounted for over 90% of the deals in 2012. But the numbers fluctuated in the following years, before dropping to 68% in 2015, and increasing slightly to 73% in 2016. Overall, 4.7% of the deals went to startups in Israel, followed by United Kingdom (2.6%) and Singapore (2.1%). AI IN ADVERTISING & MARKETING www.cbinsights.com 56 ANNUAL FUNDING HISTORY GEOGRAPHIC DISTRIBUTION OF DEALS Deals to advertising and marketing startups using artificial intelligence algorithms peaked in 2015 at 50, before dropping slightly to 47 in 2016. The top rounds last year were raised by Datorama ($32M Series C) and Persado ($30M Series C). So far in Q1’17, as of 3/21/17, investors poured in $11.5M across 12 deals, including 6 seed rounds to startups like Uru (video advertising) and Ematic Solutions (e-mail marketing). ANNUAL FUNDING HISTORY DEALS OUTSIDE THE UNITED STATES NON U.S. DEAL SHARE = 24%
  60. 60. TOP INVESTORS IN AI COMMERCE STARTUPS 2012-2017 (as of 3/23/17) www.cbinsights.com 57 RANK INVESTOR SELECT INVESTMENTS 1 SalesPredict, Totango, Taboola 1 TVision Insights, nToggle, BlueConic 1 TapFwd, Ematic Solutions, Sentisis
  61. 61. EARLY-STAGE COMPANIES TO WATCH www.cbinsights.com 58 COMPANY MOSAIC (OUT OF 1000) LAST ROUND/ DATE SELECT INVESTORS AREA OF FOCUS 810 $1.5M / Seed Nov’16 Boost VC, Dimension 6, General Catalyst Building an audience using messenger bots 770 $2.4M/ Seed Mar’17 Convergence Ventures, MDI Ventures, Walden International, Wavemaker Partners E-mail marketing 740 $8M/ Series A July’16 Salesforce Ventures, Seven Peaks Ventures, Trilogy Equity Partners, Wildcat Venture Partners ML-based marketing solutions to reduce churn and increase ROI 670 Undisclosed/ Seed Jul’16 O'Reilly AlphaTech Ventures, Real Ventures, Relay Ventures, Slack Fund Chatbots for 1:1 conversations
  62. 62. AD & MARKETING COMMERCE HEALTHCARE & WELLNESS www.cbinsights.com 59 Companies leveraging AI algorithms for predictive maintenance using industrial IoT data, wearable computing, and voice platforms for connected devices, among other things . IOT/IIOT
  63. 63. 73% of the deals in the last years went to startups in the United States But US deal share have bene dropping over the years, from 83% in 2012 to 69% in 2016. In Q1’17, deals have gone to countries including Sweden, Australia, France, and India. AI IN IOT & INDUSTRIAL IOT www.cbinsights.com 60 ANNUAL FUNDING HISTORY GEOGRAPHIC DISTRIBUTION OF DEALS Funding to AI in IoT and industrial IoT doubled in 2016 to $423M from $211 the previous year. The top round was a $100M private equity round raised by IIoT startup Stem (focused on the energy industry), followed by a $70M Series D round raised by C3 IoT. Deals to the AI-IoT space grew 9x, from 6 in 2012 to 53 in 2016. ANNUAL FUNDING HISTORY DEALS OUTSIDE THE UNITED STATES NON U.S. DEAL SHARE = 26.5%
  64. 64. TOP INVESTORS IN AI COMMERCE STARTUPS 2012-2017 YTD (as of 3/23/17) www.cbinsights.com 61 RANK INVESTOR SELECT INVESTMENTS 1 PingThings, Foghorn Systems, Sight Machine, Bit Stew Systems, MAANA, Stem, Predixion Software 2 AdaptiveWell Technologies, PingThings, OspreyData, MAANA, Predixion Software 3 Sense Labs, MAANA, Veros SystemsTECHNOLOGY VENTURES
  65. 65. EARLY-STAGE COMPANIES TO WATCH www.cbinsights.com 62 COMPANY MOSAIC (OUT OF 1000) LAST ROUND/ DATE SELECT INVESTORS AREA OF FOCUS 800 $11M/ Series B Jan’16 AXA Strategic Ventures, Lenovo Group, Liberty Media Corporation, Pitango Venture Capital Personalization platform for IoT devices 770 $16M/ Series A June’16 Reliance Industries Analytics and insights for fleet management 750 $9.54M/ Series A Jan’17 Index Ventures Predictive analytics for oil & gas industry 730 $6.6M/ Series A June’16 645 Ventures, AME Cloud Ventures, Flextronics International, Jacobs Technion-Cornell Institute, Lead Edge Capital, RRE Ventures, Upfront Ventures Baby monitor
  66. 66. HORIZONTAL APPLICATIONS www.cbinsights.com 63
  67. 67. INDUSTRY AGNOSTIC APPLICATIONS GAIN MOMENTUM IN 2016 Deals to startups developing AI solutions for different verticals dropped in 2015, but made a come back in 2016. The top round last year was a $120M Series B round raised by Beijing- based computer vision startup SenseTime. www.cbinsights.com 64 AI HORIZONTAL APPLICATIONS: FUNDING HISTORY 2012-2016
  68. 68. www.cbinsights.com 65 Horizontal AI: 2015-16 Startup Landscape VISIONTEXT ANALYTICS/ SEARCH ENGINE OTHERCONVERSATIONAL AI/ BOT PLATFORMS
  69. 69. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  70. 70. ROBOTICS: HARDWARE MEETS AI SOFTWARE www.cbinsights.com 66
  71. 71. Sabine Hauert Co-founder, Robohub.org www.cbinsights.com 67https://www.ibm.com/blogs/internet-of-things/dehyping-robotics/ “Robots are not going to replace humans, they are going to make their jobs much more humane. Difficult, demeaning, demanding, dangerous, dull – these are the jobs robots will be taking.”
  72. 72. Robotics Funding Since 2012: $3 BILLION across 488 DEALS www.cbinsights.com 68
  73. 73. INTEREST SOARS IN ENTERPRISE ROBOTS Much of deal growth in robotics was driven by the enterprise robotics sector, which saw 74 deals in 2015 — 95% growth from 38 deals the previous year — and 93 deals in 2016. Deals to the consumer robotics sector remained constant at 44 in 2016, after seeing 91% growth in 2015. www.cbinsights.com 69 ROBOTICS DEALS BY CATEGORY 2012-2016
  74. 74. The startups on the market map are building robots for industrial automation, manufacturing, warehouse automation, and restaurant services, among other tasks. AUTOMATING THE ENTERPRISE www.cbinsights.com 70https://www.cbinsights.com/blog/robotics-enterprise-startups/
  75. 75. The startups on the market map are building robots for industrial automation, manufacturing, warehouse automation, and restaurant services, among other tasks. 50+ CONSUMER ROBOTS HELPING TO CLEAN, COOK, AND MORE www.cbinsights.com 71https://www.cbinsights.com/blog/robots-consumer-startups-market-map/
  76. 76. Emerging applications GAMING, REG TECH, EXPERT AUTOMATION, AND MORE www.cbinsights.com 72
  77. 77. www.cbinsights.com 73 EMERGING AI APPLICATIONS: DEALS DISTRIBUTION BY CATEGORY Q1'12-Q1'17 (as of 3/23/17) CATEGORY Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Healthcare Horizontal Applications Commerce Ad & Marketing IoT/IIoT Business Intelligence & Analytics Fintech & Insurance Cybersecurity Sales & CRM Auto tech Personal Assistants Education HR Tech News & Media & Entertainment Legal Travel Tech Social Agriculture Physical security Reg tech Real estate IT & cloud services Sports Misc CATEGORY Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Healthcare Horizontal Applications Commerce Ad & Marketing IoT/IIoT Business Intelligence & Analytics Fintech & Insurance Cybersecurity Sales & CRM Auto tech Personal Assistants Education HR Tech News & Media & Entertainment Legal Travel Tech Social Agriculture Physical security Reg tech Real estate IT & cloud services Sports Misc
  78. 78. PERFORMANCE ANALYTICS FOR GAMERS www.cbinsights.com 74 Total funding: $2.65M Select investors: Almaz Capital Partners, Beta Bridge Ventures, Deep Space Ventures, Founders Fund, General Catalyst, GGV Capital Performance analytics for gamers in areas like vision, aggression, and teamplay consistency. HEATMAP CATEGORY: NEWS, MEDIA & ENTERTAINMENT
  79. 79. AI ASSISTED PAPER GRADING www.cbinsights.com 75 Total funding: $2.6M Select investors: Bloomberg Beta, Freestyle Capital, K9 Ventures, Reach Capital, The House Fund Integrating machine learning algorithms that learn from previously graded work to predict how answers should be graded. HEATMAP CATEGORY: EDUCATION
  80. 80. TRAVEL SMART: DEMAND FORECASTING www.cbinsights.com 76 Total funding: $14.3M Select investors: Amadeus Ventures, AXA Strategic Ventures, Chasm Capital Management, JetBlue Technology Ventures, Plug and Play Ventures, Streamlined Ventures, Thiel Capital, Western Technology Investment Risk analytics, demand forecasting, and price forecasting, among other solutions for the travel industry. HEATMAP CATEGORY: TRAVEL TECH
  81. 81. REDUCING TIME ON LEGAL WORK www.cbinsights.com 77 Total funding: $24.3M Select investors: Union Square Ventures, 8VC, Canvas Ventures, Red Sea Ventures, Formation 8 Uses AI and machine learning for advanced legal search and to find case laws related to a particular brief. HEATMAP CATEGORY: LEGAL
  82. 82. REG TECH: IDENTITY VERIFICATION www.cbinsights.com 78 Total funding: $29.5M Select investors: Salesforce Ventures, Talis Capital, IDInvest Partners, Wellington Partners Machine learning-based background verification. HEATMAP CATEGORY: REG TECH
  83. 83. Total funding: $9.39M Select investors: Spark Capital A digital picture frame using facial recognition and gesture control technologies. EVEN THE PHOTO FRAMES IN YOUR HOME www.cbinsights.com 79 HEATMAP CATEGORY: SOCIAL
  84. 84. Where are we headed? THE ‘ARTIFICIAL GENERAL INTELLIGENCE’ DEBATE www.cbinsights.com 80
  85. 85. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  86. 86. www.cbinsights.com 81 Artificial General Intelligence or General AI is the concept of an AI system with human-level intelligence and cognitive abilities that can perform a broad range of tasks and apply that knowledge to solve unfamiliar problems without being trained to do so.
  87. 87. ARE WE GETTING THERE? MAYBE. www.cbinsights.com 82source: https://www.singularityweblog.com/general-ai-challenge/ Marek Rosa CEO, GoodAI “People sometimes ask how quickly I think we will get there, and my honest answer is I don’t know. We could get there in 3 years or in 30 years. But I do believe that it will happen in this century.”
  88. 88. www.cbinsights.com 83source: https://www.technologyreview.com/s/425733/paul-allen-the-singularity-isnt-near/ PAUL ALLEN Co-founder, Microsoft “Creating this kind of advanced software requires a prior scientific understanding of the foundations of human cognition, and we are just scraping the surface of this. This prior need to understand the basic science of cognition is where the ‘singularity is near’ arguments fail to persuade us.” ARE WE GETTING THERE? MAYBE NOT.
  89. 89. “For artificial general intelligence (AGI) it would be efficient if multiple users trained the same giant neural network, permitting parameter reuse, without catastrophic forgetting. PathNet is a first step in this direction.” PATHNET: GOOGLE’S DEEPMIND PUBLISHES PAPER ON GENERAL AI’S FIRST STEPS www.cbinsights.com 84source: https://arxiv.org/pdf/1701.08734.pdf
  90. 90. 11.2 Capital, AME Cloud Ventures, Bloomberg Beta, Bold Capital Partners, Data Collective, Eclipse Ventures, First Round Capital, Google Ventures, Innovation Endeavors STARTUPS WORKING ON GENERAL AI: KINDRED www.cbinsights.com 85 FUNDING HISTORY SELECT INVESTORS
  91. 91. KINDRED’S PATENT ON ROBOTIC APPARATUS www.cbinsights.com 86 Kindred Systems’ patent filing activity started recently, with 2 patents filed in 2016 titled “facilitating device control” and “methods of self- preservation of robotic apparatus.”
  92. 92. STARTUPS WORKING ON GENERAL AI: VICARIOUS www.cbinsights.com 87 FUNDING HISTORY Samsung Ventures, Wipro Ventures, ABB Technology Ventures, Marc Benioff, Data Collective, Elon Musk, Felicis Ventures, Formation 8, Good Ventures, Jeff Bezos, Khosla Ventures, Mark Zuckerberg, Open Field Capital, Sam Altman SELECT INVESTORS
  93. 93. VICARIOUS FOCUSES ON CORTICAL NETWORKS www.cbinsights.com 88 Vicarious Systems has applied for around 6 patents since 2013, on topics like object recognition using recursive cortical networks .
  94. 94. Ed Colligan, SkyMoon Ventures STARTUPS WORKING ON GENERAL AI: NUMENTA www.cbinsights.com 89 FUNDING HISTORY SELECT INVESTORS
  95. 95. NUMENTA’S PATENT APPLICATION ACTIVITY www.cbinsights.com 90 Numenta, which is attempting to “reverse engineer the neocortex,” has applied for over 40 patents since 2005. NUMENTA PATENT APPLICATION ACTIVITY Note: The patent filing process involves a significant time-lag before the publishing of patent applications. This delay can range from several months to over two years, meaning that records prior to 2013 are likely complete at the time of analysis, but there may be applications from 2014 on that have yet to be published.
  96. 96. Stuart Russell Computer science prof. at UC Berkeley www.cbinsights.com 91http://www.vanityfair.com/news/2017/03/elon-musk-billion-dollar-crusade-to-stop-ai-space-x In 50 years, this 18-month period we’re in now will be seen as being crucial for the future of the A.I. community.... It’s when the A.I. community finally woke up and took itself seriously and thought about what to do to make the future better.”
  97. 97. Where is all this data from? The CB Insights platform has the details on all the companies, investors, and deals included in this report. www.cbinsights.com 70 CLICK HERE TO SIGN UP FOR FREE
  98. 98. CBINSIGHTS.COM @ cbinsights dvaradharajan@cbinsights.com

×